The 158 percent gas tax increase will cause business owners to scramble to compensate for increased costs.
TTF Impasse Ends with 23-Cent Gas Tax Hike
You will soon be paying more at
the pump, thanks to New Jersey legislators.
On Oct. 7, the Legislature passed
a measure that will, among other things, raise the state’s gas tax from 14.5
cents to 37.5 cents in order to fund the Transportation Trust Fund. NJ.com reported on the provisions included in
the bill, along with the gas tax hike:
- Elimination of the estate tax by
Jan. 1, 2018. On Jan. 1, 2017, the estate tax threshold will be raised from
$675,000 to $2 million. - Sales tax reduction, from 7
percent to 6.875 percent on Jan. 1, 2017 and down again to 6.625 percent on
Jan. 1, 2018. - Increase of the Earned Income Tax
Credit, from 30 percent to 35 percent. - Increase to the income tax
exclusion for pension and retirement income, up to $100,000 for joint filers,
$75,000 for individuals, and $50,000 for married couples filing separately. - A $3,000 income tax exemption for
veterans who were honorably discharged from active service.
NJ.com also reported how each
legislator voted. The Senate voted 24-14 (with two absences), and the Assembly
voted 44-27.
In a statement responding to the
158 percent gas tax increase, NFIB/NJ State Director Laurie Ehlbeck said, “The
level of frustration that our members are experiencing over this bill is
probably the highest that I have witnessed in my years as state director for
NFIB. Small business owners have been diligently working to keep their doors
open since the Great Recession, and all they ask for in return is for Trenton
to spend their hard-earned tax dollars wisely. Today, a bill was passed that
will allow lawmakers to mismanage another billion or so dollars, and we could
not be more disillusioned with the process as a whole or the outcome.
“We had almost 500 members write
letters to their state representatives to implore them to vote against this
bill. There is not a lawmaker in Trenton that can say they were not forewarned
that raising the gas tax in this manner would have a detrimental impact on the
small business community in the state of New Jersey. While the political
ramifications of the votes today remain to be seen, the economic impact will be
swift. Our employers will now have to scramble to compensate for the additional
fuel cost that has been dropped in their laps by legislators who claim to be
good stewards of taxpayer dollars.”
The measure will go into effect
on Nov. 1 or two weeks after it is signed into law by Gov. Chris Christie,
whichever is later.
